How Your Small Business Should Be Preparing For This Season

This year has been particularly challenging for retailers, and the festive season promises to be even tougher. This time of year is always exceptionally busy, with retailers facing various demands, including managing staff and customer expectations, juggling marketing activities, and tweaking operations to handle the holiday rush. The key to a successful festive season lies in being prepared. Here are the main challenges and necessary preparations to help you get your business ready.

Challenges Facing Retailers This Festive Season

Implementing Reverse Logistics
Retailers know that customers often receive gifts they may not want to keep, which means store owners need to be ready to process returns efficiently. Once items are returned, retailers must have strategies to quickly reintegrate these goods into the supply chain for resale. The shift to online shopping, accelerated by COVID-19, means customers may overbuy and return unwanted items. This increased turnover and return process can be costly, especially if parcel shipping is outsourced to third-party services.

Shifting to Customer Preferences
Customer tastes and preferences can be unpredictable in a normal year, but the pandemic has made this even more complicated. For instance, hand sanitizer and toilet paper became highly sought-after items early in the pandemic, creating procurement challenges. Now, retailers must be attuned to current trends, like in-home entertainment and exercise options, to avoid shortages and offer a variety of desirable products.

Reconsider Promotion Schedules
The drastic drop in retail sales in the first half of 2020 caught many retailers off guard, forcing them to think creatively to move old inventory. COVID-19 has caused significant bottlenecks in the retail supply chain, and the festive season is likely to see similar issues. Consider adjusting your promotion schedules; for example, Amazon postponed its Prime Day to encourage earlier holiday shopping, which may help reduce pressure on the supply chain.

Preparations for Your Retail Store

Act Now
The holiday rush is approaching, so create a strategy and coordinate with your suppliers to ensure smooth operations. Compare this year's plans with last year's and make necessary adjustments based on pandemic-related changes.

Hire Staff and Increase Digital Support
Now is the time to hire additional staff to manage high demand effectively. Additionally, create a 'digital twin' of your supply chain, ensuring that online orders have dedicated staff to manage them alongside in-store operations.

Make Your Store Feel Festive
Customers appreciate an inviting shopping environment. Enhance your store's ambiance to make it as enticing as possible, starting with window displays that showcase your most desirable products.

Create Special Holiday Promotions
Despite a tough year, people still want to shop. Entice them with irresistible offers to encourage purchases from your store. Keep in mind that January sales are beginning earlier, so have a strategy ready for follow-up activities.

The Bottom Line

This year has been exceptionally challenging for retailers. Embrace the festive season and take full advantage of holiday sales opportunities. Whether you're planning exciting promotions, hiring more staff, preparing for increased online sales, or enhancing your store, Merchant Capital can provide the working capital you need to support your operations. Contact us today for fast, efficient funding to help you make the most of this festive season.

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